Quarterly report pursuant to Section 13 or 15(d)

Industry, Segment and Geographic Information

v2.4.0.8
Industry, Segment and Geographic Information
 6 Months Ended
Jun. 30, 2013
Industry, Segment and Geographic Information  
Industry, Segment and Geographic Information

13.          FASB ASC Topic 280, “Segment Reporting,” requires that public companies report profits and losses and certain other information on their “reportable operating segments” in their annual and interim financial statements. The internal organization used by the public company’s Chief Operating Decision Maker (CODM) to assess performance and allocate resources determines the basis for reportable operating segments. The Company’s CODM is the Chief Executive Officer.

 

The Company is organized into two reportable operating segments.  The “Lifeboat Distribution” segment distributes technical software to corporate resellers, value added resellers (VARs), consultants and systems integrators primarily in the United States and Canada.  The “TechXtend” segment is a value-added reseller of software, hardware and services for corporations, government organizations and academic institutions in the United States and Canada.

 

As permitted by FASB ASC Topic 280, the Company has utilized the aggregation criteria in combining its operations in Canada with the domestic segments as the Canadian operations provide the same products and services to similar clients and are considered together when the Company’s CODM decides how to allocate resources.

 

Segment income is based on segment revenue less the respective segment’s cost of revenues as well as segment direct costs (including such items as payroll costs and payroll related costs, such as profit sharing, incentive awards and insurance) and excluding general and administrative expenses not attributed to an individual segment business unit. The Company only identifies accounts receivable and inventory by segment as shown below as “Selected Assets” by segment; it does not allocate its other assets, including capital expenditures by segment.

 

The following segment reporting information of the Company is provided (in thousands):

 

 

 

Six months ended

 

Three months ended

 

 

 

June 30,

 

June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Revenue:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

115,078

 

$

102,850

 

$

61,209

 

$

53,548

 

TechXtend

 

24,997

 

33,226

 

12,886

 

15,621

 

 

 

140,075

 

136,076

 

74,095

 

69,169

 

Gross Profit:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

8,284

 

$

7,629

 

$

4,511

 

$

3,844

 

TechXtend

 

2,994

 

3,528

 

1,454

 

1,746

 

 

 

11,278

 

11,157

 

5,965

 

5,590

 

Direct Costs:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

2,350

 

$

2,238

 

$

1,245

 

$

1,107

 

TechXtend

 

1,654

 

1,681

 

765

 

840

 

 

 

4,004

 

3,919

 

2,010

 

1,947

 

Segment Income:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

5,934

 

$

5,391

 

$

3,266

 

$

2,737

 

TechXtend

 

1,340

 

1,847

 

689

 

906

 

Segment Income

 

7,274

 

7,238

 

3,955

 

3,643

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

3,727

 

$

3,619

 

$

1,804

 

$

1,604

 

Interest Income, net

 

276

 

254

 

146

 

130

 

Foreign currency translation gains

 

21

 

1

 

16

 

—

 

Income before taxes

 

$

3,844

 

$

3,874

 

$

2,313

 

$

2,169

 

 

Wayside Technology Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

June 30, 2013

(Amounts in tables in thousands, except share and per share amounts)

 

Selected Assets By Segment:

 

As of
June 30,
2013

 

Selected Assets by Segment:

 

 

 

Lifeboat Distribution

 

$

33,543

 

TechXtend

 

30,493

 

Segment Select Assets

 

64,036

 

Corporate Assets

 

14,565

 

Total Assets

 

$

78,601